Mutual Fund Industry Assets Grow By Rs 11 Lakh Crore In 2023, Surpass Rs 50 Lakh Crore-Mark: Amfi

In 2023, the mutual fund industry saw a substantial increase in overall inflow, which enhanced the assets under management of the mutual fund industry by 27 per cent, and added Rs 10.9 lakh crore

The data revealed that the asset base grew from Rs 39.88 lakh crore in 2022 to a peak record high of Rs 50.78 lakh crore in 2023

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The mutual fund industry logged a robust performance in 2023 and saw its asset base grow by Rs 11 lakh crore to surpass the Rs 50 lakh crore mark during the period, data from the Association of Mutual Fund Industry (Amfi) revealed on Monday. The data found that the industry registered the boost, driven by an optimistic equity market, steady interest rates, and a robust economic expansion.

Comparatively, the industry saw a lackluster performance in 2022 and registered a strong recovery in the following year, reported PTI. In 2023, the mutual fund industry saw a substantial increase in overall inflow, the data stated. This inflow gave a push to the assets under management (AUM) of the mutual fund industry by 27 per cent, and added Rs 10.9 lakh crore in 2023. This remained much higher in comparison to the growth witnessed a year earlier. In 2022, the AUM in the industry saw a boost of 5.7 per cent and an increase of Rs 2.65 lakh crore. Further, in 2021, the asset base logged a growth of 22 per cent and an addition of nearly Rs 7 lakh crore. 

The data revealed that the asset base grew from Rs 39.88 lakh crore in 2022 to a peak record high of Rs 50.78 lakh crore in 2023. Earlier in 2021, the asset base stood at Rs 37.72 lakh crore, while it remained at Rs 31 lakh crore in December 2020. 

The report found that 2023 also marked the 11th consecutive yearly increase in the AUM in the industry after a drop in the preceding two years. The growth in the industry was backed by inflows in equity schemes, specifically via Systematic Investment Plans (SIPs). Industry experts credited the major rise in the asset base to increasing equity markets, stable interest rates, and economic growth.

The industry logged net inflows of Rs 2.7 lakh crore in 2023, against an inflow of more than Rs 71,000 crore in the preceding year.